Fund-raisings pay off for resilient JP Morgan Cazenove

JP Morgan Cazenove has soundly beaten the competition as a string of companies
including HSBC, Xstrata and Barclays have turned to the blue-blooded firm to
help them raise billions of pounds of capital.

By Katherine Griffiths, Financial Services Editor

7:24PM GMT 04 Mar 2009

In a year when other advisory firms have been decimated by swingeing losses incurred by other parts of their business, JP Morgan Cazenove has attracted new clients and business.

The firm added several companies to its roster of corporate broking clients, including private equity group 3i, media company Aegis and sub-prime lender Provident Financial.

It has also secured a dominant position in the flurry of issuance of new capital and debt by companies recently.

JP Morgan Cazenove is an entity jointly owned by the US bank JP Morgan and the stockbroker Cazenove, whose clients include the Queen. It was formed in 2004 as a joint venture.

Next year, JP Morgan has the right to buy out Cazenove's stake, which is owned by its current and former employees. At the same time, Cazenove has the right to sell its half of the joint venture to JP Morgan.

Despite selling half of its business to JP Morgan, Cazenove has remained focused on its historic business of advising companies. It does not lend money to clients.

Naguib Kheraj, former finance director of Barclays who became chief executive of JP Morgan Cazenove in October, said the business had proved resilient in very difficult markets.

Pre-tax profits fell 15pc to £135m in the year to Dec 31. Revenues fell 10pc to £395m.

Companies will continue to be able to raise money, Mr Kheraj said, but he added: "Investors will be very selective about what they are prepared to support".